This paper studies a class of second-best solutions to the Volunteer's Dilemma. We consider a simultaneous-move game involving n players, each of whom can prevent social harm at a cost. Players could be rewarded for helping, be punished for not helping, or be subject to any combination of...

This paper offers an option value-based rationale for the consideration of a non-compliance record in sentencing decisions. We study compliance decisions of a population of individuals who live for two periods. We show that when non-compliance benefits are random and independent across periods,...

Empirical evidence indicates that termination fees in merger agreements discourage competition from higher-valuing bidders but do not necessarily harm target shareholders' returns. We present a signaling theory that explains these findings by treating the presence of a termination fee as a...

The ambiguous phrasing of pari passu (equal treatment) clauses in sovereign debt contracts has long baffled commentators. We show that in the presence of asymmetric information on a sovereign borrower's ability to pay, an uncertain clause gives rise to a collective action problem among creditors...

This paper analyzes rights of first refusal and rights of first offer in a multiple-buyer, sequential bargaining setting. A right of first refusal entitles the right-holder to purchase a subject asset on the same terms as those accepted by a third party. A right of first offer requires a seller...

This paper studies the role of commitment in the design of enforcement mechanisms when enforcement can remedy harm from non-compliance. We consider a game between an enforcement authority ("enforcer") and an offender in which either the enforcer or the offender may act as a Stackelberg leader....

Looking to curb potential liability and comply with regulatory standards, many large-scale injurers now offer nearby residents to purchase their property and help them relocate to safer areas. Because the relocation of potential victims reduces the risk of harm and saves litigation costs,...